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Outstanding video. Best explanation of a Balance Sheet I’ve watched or have explained. As a bookkeeper, I look at BS frequently and this was the clearest explanation. Well done Leila
Words cannot describe how appreciative I am for you doing such a series, slightly off Excel but delving into actual Finance principles. We don't even work for the same company, but I'd nominate you as "Employee of the Month" just for that!
Just started my accounting module on ratio analysis and this video showed up, really useful explanation using a real company's balance sheet. It would be great if you made a video on Apple's P&L and cashflow.
Beautiful Leila. Really wonderful. One request however, is it possible to have you briefly present on Debtors and Creditors Control? That would really help. Thanks.
Excellent video for non financial users! I work in public accounting and studying for my CPA and your video is a good overview of some relevant ratios. Looking forward to more
Great intro into Apple's financial statements, Leila: showing payable days at 83 means for you as a supplier you need a huge amount of cash for prefinancing your production while making business under hard limits (cost, quality control) with Apple. The guys in Los Altos are collecting cash from customers and suppliers. Didn't know that yet.
Agree. And that a requirement in the automotive industry '' paying for packaging and raw materials from the clients 😅 and waiting for extra penny's on every delivery '' buy and resale strategies
I already know these for years now. To a supplier, Apple is a "bad" customer as they squeeze them the cost, and demand quality n long payment term. However, many suppliers can't lose Apple as this is their biggest customer. And this Tier-1 suppliers, use the same "method" and demand the same to their Tier-2 suppliers and so on. And this is the real world.... What surprise me is that they are paying their suppliers in such a long time........
Accountant here, excellent video for beginners. Just to add some context to apple's excellent Cash conversion cycle; when companies outsource manufacturing, raw materials/component parts are not reflected on the statements and therefore only finished products are reflected as 'Inventory'. Meaning the inventory days becomes much smaller. Additionally, we're all aware that Apple stocks are high valued. They have a market capitalization of about 2trillion. Market capital cap refers to the total value of all shares at market price. The value of stocks reflected on the balance sheet is par. That means its the price the stock was issued at by Apple to the public. The price of Apple stocks on the secondary market(stock market) is higher than par because investors value the stock to be worth more than it was issued at.
Thanks for all you do Leila. This is kinda a refresher course for a Chartered Accountant like me. I hope to see videos on Statement of Cash flow and the likes. Again, thank you
Excellent video, @Leila Gharani. Much clearer than my graduate school class in financing and accounting. Please keep making more of these kinds of videos. Thank you.
Leila..Absolutely bests ratio and balance sheet explained. Complex balance sheet analysis made simple. Your explanation is just as good as soothing running water to ears. Thankyou for sharing you knowledge... 👍🏾
U are honestly the best ! ever since I watch your vids, it has been very clear !! Pls do more of this kind of vids especially financial statements and dive more technically ~~
Laila, i am as a CFO would like to say you are really Fantastic and i wish to meet you one day to learn from you more in my long life of work, congratulations always
You should try teaching Quantum Mechanics, most art students may shift careers. Also, please teach us to write research reports for fintech companies. I feel Powerpoint is better than word coz of graphs and graphics, but you are the teacher 😇
Excellent video Leila. Simple, straight, informative and meaningful. I personally loved those ratios viz. Inventory Days, Receivable Days, Payable Days. Thanks !. Wish you happy Christmas and healthy n prosperous year ahead. Love from India !!!
Thank you so much for that crash course in MBA, Leila! Companies like Apple & Co do their balance sheet with a specific software, but... Excel allows to do a lot more than simple mathematic operations! 🙂
A great explanation. However, I’d prefer to combine 3 information from the Financial Report to know whether a company is doing well or not. They are The Balance sheet, the Income Statement, and the Cashflow statement. Balance Sheet = What’s been happening to the company? Income Statement = What’s the company been doing through the year? Cashflow Statement = Where’s the money? Cashflow Statement is the most important to know whether a company is worth investing or not. That’s because, ‘Cash is cash. The rest is just Accounting.’
Leila, another well delivered tutorial, thank you. May I suggest content for another tutorial? I'd like to know if and how I can apply standard formatting (font, font size, paragraph alignment, and line spacing, etc) to all MS Word docs on my hard drive without having to open each file individually and apply the desired formatting. It would also be good to add in a command that converted older file formats, such as Word 97-2003, to the latest format without having to open and save each file in the new version. Thank you.
Hi Leila, Hope you are doing well. It's Sayak from India, want to say that your all videos are awesome and helps me a lot, It is my humble request that would you kindly create a video for Bank reconciliation. We get the bank statements in excel for and we match it with ERP data, How can we standardise the process or what should be the best practice, with exceptions scenarios as well. Kindly look into it. It will be very helpful. Regards, Sayak Dasgupta
Really nice and easy to understand video. However I would like to comment that looking at 1 Balance sheet doesn't tell very much about a company as most companies do use makeover tricks. You would need at least 4 reports (5 years) to get a proper idea how the company is doing.
Thanks Leila, as always perfect explained. If you find interesting numbers, I can imagine that you are enthousiastic. But a phrase like "great result" is of course only from the perspective of Apple. I teach my students that supply chains are competitive and win-win situations are important. But these figures demonstrate quite well that the power of the supply chain is definitely not equaly distributed. Poor suppliers...
Well she was presenting it from Apple's perspective. So Apple has managed to be strategic in their choice of suppliers, so I wouldn't necessarily call them "Poor suppliers" per se to be honest. If you look at it from the oil industry, how would you describe the power of the supply chain then?
